ETY vs QQQ: Correlation
Eaton Vance Tax-Managed Diversified Equity Income Fund (ETY) and Invesco QQQ Trust (QQQ) show a very strong relationship: their 3-year correlation of weekly returns is 0.86.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ETY and QQQ?
Across a 3-year window, the weekly returns of ETY and QQQ correlate at 0.86, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.80 lands near the 3-year figure. Stretching to 5 years gives 0.83, with an annualized covariance of 260.6 %².
By 3-year correlation, QQQ places #10 of the 34 assets tracked against ETY. The last year tells two different stories: QQQ led by 26.7 percentage points, -0.4% for ETY against +26.3% for QQQ.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ETY vs QQQ: side by side
| ETY (Eaton Vance Tax-Managed Diversified Equity Income Fund) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | -0.4% | +26.3% |
| 5-year return | +51.2% | +95.4% |
| Volatility (ann.) | 15.4% | 19.6% |
| Beta vs S&P 500 | 0.97 | 1.28 |
| Max drawdown (3Y) | -21.3% | -22.8% |
| Market cap | – | – |
| P/E (trailing) | 5.2 | – |
| Dividend yield | 8.24% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | US Listed | ETF · US Growth & Tech |
QQQ is a Large Growth fund from Invesco: $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | ETY | QQQ |
|---|---|---|
| 2022 | -21.2% | -32.6% |
| 2023 | +21.9% | +54.9% |
| 2024 | +33.1% | +25.6% |
| 2025 | +11.0% | +20.8% |
| 2026 | +0.2% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ETY and QQQ good diversifiers for each other?
Not really. At 0.86, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between ETY and QQQ?
The ETY/QQQ correlation stands at 0.86 on a 3-year window (1 year: 0.80, 5 years: 0.83), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for ETY?
Not really. At 0.86, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.86 mean?
A reading of 0.86 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ety-vs-qqq.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ety-vs-qqq/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ETY correlations · QQQ correlations
